Assuming you qualify for the Go Zone Bonus Depreciation, below is an example of how calculations are normally figured.  Click Here for detailed Preconstruction Go Zone Qualifications that typically a CPA will use.  We have found that many investors are confused as to whether or not they qualify.  We have detailed in the hyperlink above how those may qualify whether you are a real estate professional or not.

 We have used an example of how one of our single family homes should be depreciated.

Purchase Price:     $135,000

Land Value             $10,000

Depreciation is calculated only off structural depreciation.  You may not include land in your calculations, so:

Structure Value:    $125,000  (Depreciable Amount)

50% Bonus:          $62,500

The $62,500 is your real estate depreciation, also known as your “write off”. 

To assume your actual in-pocket IRS Savings, multiply your tax bracket by the $62,500. 

For those in the 25% taxable bracket:  $62,500 x .25 = $15,625 Total Savings

The amount of tax dollars you are saving is invested into real estate instead of going to the IRS, which is an added benefit to you. 

Assuming you purchase a preconstruction Go Zone Duplex, the amount is calulated from the structural value again.

Based off of our exclusive pricing we are going to show you how the Go Zone Bonus Depreciation will help you. Go Zone Preconstruction is certainly one of the more lucrative investment purchases in today’s market.

This is not tax advice. To verify qualifications for the go zone, it is advised that you consult with a CPA.   Contact us for an experienced tax attorney in the Go Zone regions to assist in qualifying criteria.

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